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Pueblo Appraiser Learns Much on Capitol
Hill
Although I traveled to Washington DC last week specifically to
participate in the National Community Reinvestment Coallition’s (NCRC)
disucssion on Vaulation and Appraisal Issues in an Era of Predatory
Lending, I was able to sit-in on many other discussions that gave
me great insight into the red-hot issues facing the entire finance and
real estate industry today.
It was interesting to hear the views from all sides of the debate on
predatory lending. Not only were representatives in attendance
from Fannie Mae, Freddie Mac, HUD, OCC, the Federal Trade Commission,
the Federal Reserve Board, Fair Housing and Neighboorhood Assistance
Programs, Consumer Groups, and FDIC, but there were also professionals
in attendance from Europe, the United Kindom, South America and
Africa.
Some of the issues discussed, which will be covered in subsequent
articles, included altering the Right to Rescission, which permits
consumers to waive the Truth in Lending Act three day right to
rescission that ensures that homewoners have additional time to study
the loan document, seek advice, and understand the terms of the
transaction before commiting to a transaction that may not have been
what they expected at the time of closing.
Also discussed was the expansion of Industrial Loan Companies (ILCs)
which would allow financial firms and commercial entities to establish
nationwide commercial banking systems which are subject to more lenient
supervision than the current standard. And most importantly, a
debate was entered into that considered the implications of the mass
re-setting of loans that will occur in the near future.
Even though NCRC’s primary thrust is ensuring equitable access to
credit and capital for underserved communities and individuals, their
ethical practices will benefit not only the whole of consumers but the
ultimate health of the financial industry as well. Although many
in the real estate industry fight against enforcement and regulation
issues with valid concerns, the majority who do not want to see
demanding accreditation of participants in the loan process enforced
are in the business to make a quick buck, regardless of the harm done
to trusting lenders and innocent and unknowing consumers.
Although there are still many questions about The Center for Responsibe
Appraisals and Vaulations, NCRC has taken an
important stand in recognizing the plight of the appraisal industry by
not only considering how it affects consumers and predatory mortgage
practices but also how it affects ethical appraisers. It is for
this reason I am honored to become a charter signatory member.
And as Heraclitus’ 2,500 year old adage ‘“Change Is the Only Constant”
has been proven true, I believe that honest appraisers must be active
in that change and step forward to make our voices heard and be
involved in the future of our profession.
Although, as an appraiser, I am not duty-bound to represent the wishes
of either the lender or the borrower, I realize I do have an ethical
and professional duty to give an impartial, true valuation of a
property. And in this capacity I serve both the lender and the
borrower in the best possible way.
It is evident that most consumers do not understand the complexity of
the loan process. They, often wrongly, rely on the advice
of “professionals.”
The goal of any ethical real estate professional should not just be to
close the deal and get a borrower into a home in any way possible but
to serve both entities by honest and ethical business dealings.
The purpose should not just be to get a family into a house...but to
keep it.
But, please, do your homework and come to your own conclusions.
As Ronald Reagan said, “Trust, but verify.” Be proactive, voice
both your concerns and your ideas for solutions, but remember, beyond
the consideration of your next “deal,” may rely the future of both
individual families and, in turn, entire neighborhoods.
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